Rollover 401(k) in Des Peres, MO

Rollover 401(k) in Des Peres, MOProfessional, Honest, and Experienced Retirement Planners and Financial Advisors

Rollover 401(k) in Des Peres, MO. Moving to a new job in Des Peres, MO is exciting, but it can also lead to confusion about the best way to manage the savings you have in your 401(k) account with your previous employer. Many Des Peres, MO residents have found that seeking the help of qualified financial advisors is the best way to go about handling a 401(k) rollover. At Correct Capital, our experienced team of 401(k) experts and retirement consultants will help you determine what makes the most sense for you. For rollover 401(k) consulting in Des Peres, MO, call us today at 314-930-401K or contact us online.


How You Can Approach Your Rollover 401(k) in Des Peres, MO

In general, you have four options when considering whether to roll over your 401(k). A experienced Des Peres, MO financial advisor like those at Correct Capital will be able to look at your financial situation and guide you towards your preferred option. Depending on your current financial health and your time horizon, we may recommend to:

  1. Leave the funds in your former employer's 401(k) plan;
  2. Roll over your 401(k) to your new employer's 401(k);
  3. Roll over your 401(k) into a Traditional IRA or Roth IRA;
  4. Take the cash value out of your 401(k).

Cashing out is not recommended unless you need money now. Your previous employer will have to take out 20% of the balance in order to pay taxes on it. You may also face a 10% early withdrawal penalty from the IRS, and you would would be subject to federal, state, and local taxes. Meaning, you could potentially lose more than 50% of the account's value.

It is important to mention that many companies in Des Peres, MO require you to roll over the funds to an IRA or new 401(k) if your plan has less than $5,000 in it. Furthermore, they may be able to cash out your account if it has less than $1,000.



Benefits to Rolling Over a 401(k) into an IRA in Des Peres, MO

Your Des Peres, MO financial advisors at Correct Capital may counsel that rolling over your 401(k) funds into a Traditional or Roth IRA is your best option. This is beneficial for several different reasons:


Take Advantage of Special Rules if You Have Publicly Traded Company Stock in Your 401(k)

Net unrealized appreciation (NUA) is the difference between the original value and current value of company stock in your 401(k) plan. If part of your 401(k) includes company stock, you can transfer that difference into a standard brokerage account, and roll the remainder to an IRA. The advantage of this is that you may pay long term capital gains tax on the shares — which is 0%, 15%, or 20%, depending on your income — rather than income tax, which may be considerably more.


The Financial Institution of Your Choice

When you opt to put your retirement funds in a 401(k), the money will be held by the 401(k) company your employer chooses. By rolling over to an IRA, you'll be able to choose your preferred institution based on stability, trading technology, and financial services.


A Wider Range of Investment Opportunities

While some Des Peres, MO companies provide 401(k) plans that include a wide array of investment options, most retirement planners find that IRAs offer more control and flexibility than employer-limited 401(k) plans. IRAs typically allow investment in almost any type of asset, including:

  • Stocks
  • Bonds
  • Certificates of deposit
  • Mutual funds
  • Exchange-traded funds
  • Real estate investment trusts
  • Annuities

Combine Your Savings Accounts

If you have several 401(k) plans spread across multiple former employers, there are many advantages to incorporating the funds from all your accounts into one plan. In doing so, it won't be nearly as much of a hassle to follow how your savings are growing and managing them will be more streamlined. Sustained long-term growth may also be more attainable.


Continue Adding Money to Your Accounts

While you will still see return on your investments in you old 401(k) plan, you will no longer be able to contribute more savings to it. By rolling over the funds into an IRA, you may be eligible to keep contributing to the plan you've picked out.

The financial advisors of Correct Capital will guide you in your decision of what to do during a 401(k) rollover. We have more than 20 years of experience advising both individuals and families and business owners in Des Peres, MO with comprehensive 401(k) services. When you meet with us, we'll help you navigate special considerations, for instance which type of savings plan fits best in your portfolio.

When to Avoid a 401(k) Rollover in Des Peres, MO

Each of our client's financial situation is unique, and your Des Peres, MO retirement planners at Correct Capital may advise that your investments are best kept in a 401(k) account; either your an old plan or rolling them over into a new one. Some reasons to choose a 401(k) plan rather than an IRA are:

  • If your current 401(k) plan works for you. If the fees are fair and you're getting strong returns, it may be your best option to keep your savings where they are. You are not required to roll over a 401(k) immediately, so you are free to change your mind and transfer the funds at a later date.
  • No early withdrawal fees if you are 55. While both 401(k)s and IRAs permit withdrawals when you are 59½, you will not have to pay a 10% early withdrawal fee taking money out of a 401(k) once you have turned 55. A 401(k) may be best if you're considering early retirement.
  • Loans from an IRA are not allowed. While taking a loan from retirement savings isn't recommended, it is important to know that you cannot take a loan out of an IRA.
  • Your employer can put matching contributions into your 401(k) plan. While some employers will allow you to roll money out of your 401(k) to an IRA while you are still working, it may make more sense to keep contributing to your 401(k) your employer will match your contributions.

Click on the links below to see some of the other services we offer in Des Peres, MO:

Rollover 401(k) Des Peres, MO | 401(k) Management | Financial Advisors | Retirement Planning Near Des Peres

Rollover 401(k) in Des Peres, MO | Correct Capital

At Correct Capital, we treat each client individually and get to know them so we can help them reach their goals. Our team of retirement consultants, portfolio managers, and financial planners have nearly a century of combined experience aiding Des Peres, MO individuals and families with 401(k) rollovers as part of our all-inclusive wealth management services. As fiduciary advisors, we have a legal and ethical obligation to oversee your account in a way that benefits you and only you. As an independent firm, we are free to be honest and objective, and there are no restrictions to the services or investment opportunities we can recommend.

Call us today at 314-930-401K or contact us online to schedule an appointment with one of our knowledgeable 401(k) experts and retirement consultants today.

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